As shown on the chart above, the Composite Index continued it's technical correction on Tuesday, ended the day 4.68 points lower to 959.94 points. As indicated by arrow A, the Composite Index rebounded at the 31 days EMA as well as the 950 Fibonacci retracement level. Therefore, 950 is the current support level for Composite Index. (Study A) Nevertheless, the resistance for the Composite Index remained at 970.5 Fibonacci Retracement level.

As circled by B, WinChart RSI fall below the 70% level, and as a result, it suggested that the bullish market sentiment has ended. Currently, WinChart RSI is situated in the neutral region thus indicated that the market strength is at neutral. (Study B)

As shown by the C curve, MACD histogram continue to decline, thus showing that the bull was losing strength. Mean while, the round top shape of the MACD histogram also suggested the further consolidation of the Composite Index, thus the Composite Index movement for the short-term is likely to be bearish until a round bottom shape is formed. (Study C)

Straits Index (M) Sdn Bhd
No. 16, Jalan LP 1A / 5, Lestari Perdana,
43300 Seri Kembangan, Selangor
Hotline: (03) 8941 6828  (5 lines)   Fax: (03) 8941 9828    
Email: info@straitsindex.com
© Copyright 1997-2006 Straits Index (M) Sdn Bhd All rights reserved